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TMI Blog2023 (9) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub-section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017) 1. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and APGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the APGST Act. 2. The present application has been filed u/s 97 of the Central Goods Services Tax Act, 2017 and AP Goods Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. KSH Automotive Pvt Ltd (hereinafter referred to as applicant), registered under the AP Goods Services Tax Act, 2017. 3. Brief Facts of the case: 3.1 M/s KSH Automotive Pvt Ltd (hereinafter referred to as applicant) Is engaged in the business of manufacture of auto parts and components and supplier to KIA motors. Applicant is having GST Registration number 37AAGCK8900L1Z5. The applicant provides canteen facilities to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; (ii) membership of a club, health and fitness centre; and (iii) travel benefits extended to employees on vacation such as leave or home travel concession: provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. The applicant states that, canteen facility is being maintained at its factory premises to its employees to comply with the mandatory requirement of maintaining the canteen as per the Factories Act, 1948. The relevant section 46 of the factories act states as under: Section 46 Canteens (1) The State Government may make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the worker ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the case of The Commissioner Central Excise Vs M/s. Ultra tech Cement Ltd on 25 October, 2010 in Central Excise Appeal No. 7 of 2010 has held that: As rightly contended by Shri Shridharan, learned counsel for the respondent-assessee, in the present case, the assessee carrying on the business of manufacturing cement by employing more than 250 workers is mandatorily required under the provisions of the factories act, 1948 to provide canteen facilities to the workers. Failure to do so entails penal consequences under the factories act, 1948. To comply with the above statutory provision, the assessee had engaged the services of a outdoor caterer. Thus, in the facts of the present case, use of the services of an outdoor caterer has nexus or integral connection with the business of manufacturing the final product namely, cement. Hence, in our opinion, the Tribunal was justified in following the larger bench decision of the tribunal in the case of GTC Industries Ltd. (supra) and holding that the assessee is entitled to the credit of service tax paid on outdoor catering service. Thus, applicant is of the view that canteen Services to employees in the Factory Premises as mandated by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Factories Act, 1948 read with factory Rules to provide canteen and food to workers, applicant is of the view that they are eligible to claim ITC on the vendor invoices towards the food supplied to workers in line with second proviso to Section 17(5)(b). Based on the above submissions, applicant is of the view that ITC on the vendor invoices received towards food served in canteen are duly eligible. 6. Personal Hearing: The proceedings of Personal Hearing were conducted on 29.03.2023, for which the authorized representative, Shripada Hegde, CA attended and reiterated the submissions already made. 7. Discussion and Findings: We have examined the issues raised in the application in light of the facts and arguments submitted by the applicant. We have considered the submissions made by the applicant in their application for Advance Ruling. We have considered the issues involved from which advance ruling is sought by the applicant and the relevant facts along with arguments made by the applicant and also their submissions made during the time of the personal hearing. The issue inward in the instant case is to decide i) Whether the applicant is eligible to take the ITC on the vendo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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